Synopsis: Bitcoin crashed over 10% to $63,000, its worst drop since FTX’s 2022 collapse, dragging down crypto, silver, gold, and stocks in a brutal market-wide sell-off.
The crypto market faced a brutal reckoning Thursday. Bitcoin tumbled more than 10% in just 24 hours. The digital currency dropped to $63,000, marking its steepest single-day decline since November 2022.
This sharp sell-off has sent shockwaves through the entire financial landscape. Moreover, the crash extends beyond cryptocurrency markets. Silver plunged 15%, while gold slid over 2% during the same period. Major U.S. equity indexes also suffered losses.
Market Bloodbath Spreads Across Multiple Assets
The largest cryptocurrency by market cap fell to session lows near $63,000. This represents the weakest level since October 2024. Bitcoin now trades 50% below its record high above $126,000 from early October.
Source: Tradingview
February 5 could mark one of bitcoin’s darkest days in history. The 10.5% drawdown since midnight UTC rivals the devastating 14.3% plunge during the FTX exchange collapse. That catastrophic event in November 2022 sent bitcoin crashing below $16,000.
Furthermore, the sell-off wasn’t limited to digital assets. Silver experienced a massive 16% drop from Thursday’s trading session. The precious metal now sits almost 40% below its record high from just one week ago. Gold fell more than 2% to $4,850, though its decline proved less severe.
Software stocks continued their downward spiral alongside bitcoin. The iShares Expanded Tech-Software ETF declined more than 3%. Year-to-date losses for this fund now exceed 24%. Additionally, the S&P 500 and Nasdaq both dropped 1%.
Also Read: Why Is Bhutan Moving $22 Million Worth of Bitcoin This Week? Are They Selling?
Crypto Stocks Join the Downturn
Crypto-related companies couldn’t escape the carnage either. Coinbase, Galaxy, Strategy, and BitMine all tumbled more than 10%. Major mining operations felt similar pain. Bitfarms, CleanSpark, Hut 8, and Mara posted comparable losses during the session.
“One big factor is just very thin liquidity,” explained Adrian Fritz. He serves as chief investment strategist at 21shares. “If there is a bit of sell pressure, it usually triggers many liquidations.”
Fragile market conditions with limited buy and sell orders create dangerous situations. Even modest sell-offs can trigger massive price reactions. These movements then spark additional forced liquidations across leveraged positions.
No Clear Bottom in Sight
While some market observers declared the worst had passed weeks ago, Fritz disagrees. “There’s still no signal that we bottomed out,” he stated firmly. “I think it’s too early. There’s no confirmed turnaround.”
The analyst points to a crucial technical indicator for guidance. The 200-day moving average currently sits between $58,000 and $60,000. This level represents a key support zone worth monitoring closely.
This range also aligns with bitcoin’s “realized price.” That metric tracks the average cost basis of all bitcoin holders. Fritz believes this could provide strong, multi-year support for the cryptocurrency.
Altcoins Face Devastating Losses
Bitcoin’s double-digit decline appears mild compared to alternative cryptocurrencies. Almost all major tokens and memecoins dropped more than 10% over 24 hours. The broader crypto market faced complete decimation.
XRP suffered particularly harsh punishment during the sell-off. The token fell 19% over the same period. It underperformed most other large-cap cryptocurrencies significantly.
Fritz noted no specific catalyst targeting XRP specifically. However, he observed important technical weaknesses. “From a technical point of view, there’s not many support levels for XRP,” he explained.
The current market environment reflects extreme risk aversion across all asset classes. Investors fled from high-risk investments into safer havens. Total crypto liquidations exceeded $1 billion during this volatile period.
This correction follows bitcoin’s impressive rally throughout 2025. The cryptocurrency achieved all-time highs above $100,000 during that extraordinary run. Recent months brought repeated pullbacks tied to various factors.
Tech stock weakness, geopolitical tensions, and macro concerns contributed to selling pressure. Nevertheless, the sharp reversal caught many investors off guard. The speed and severity of the decline raised concerns about further downside.
Market participants now watch technical levels closely for signs of stabilization. The $58,000 to $60,000 range remains critical for bitcoin’s near-term trajectory. A break below this zone could trigger additional selling pressure.
Written by Fazal Ul Vahab C H
